Hey you guys, I’ve been constantly asking and stressing myself about this car I want to refinance early. I’m currently paying around $800 a month, including insurance, on my 2016 Hyundai Elantra. But after multiple attempted thefts (only had it for a few months), I want out of it. On the bright side, I make over $3.4k a month, and I’m going to college while being a full-time worker at my young age. So I was wondering, is this car worth it? Here’s my budget breakdown and I just want to know if it’s a good idea, a meh idea, or an ugly one.
$1.1k a month for the new car, including insurance
$170 for gas
$600 for savings (mostly Hysa, and some for IRA)
$500 for rent to help out my mother for a few months (will go down to zero by the end of March)
That leaves me with around $900 to $1.1k leftover to treat myself, go out, and more, which is fine with me as a college student.
Ps: The loan term would be 72-96 months with about $30k in total debt at a 9.74% interest rate. I plan on paying down the principal whenever I can, so I’m cool with having a couple of months where I only have $400 to go out with friends, buy clothes, etc.
Hey, I feel you on the car stress. But your monthly expenses look pretty reasonable, especially with your savings and income. You should be okay as long as you keep track of your spending and don’t get too caught up in the car payments. Maybe consider negotiating for a lower rate if you can?
@Zane
Thanks for the advice! Yeah, I plan on negotiating. Hoping I can get a better deal, but if not, I’ll probably just stick with my current car for now. At least it’s paid off, lol.
I think it sounds pretty doable. You’re putting a lot toward savings, and your leftover cash seems pretty solid. Just make sure to keep track of those unexpected expenses like repairs, gas, etc. Those can creep up and throw off your budget.
@Avery
Yeah, I definitely need to stay on top of that. I know car repairs can be unpredictable, so I’ve been putting aside a bit extra just in case. Better safe than sorry, right?
I personally think it’s a bit risky, especially with the long loan term. 72-96 months is a long time to be locked into that much debt. What happens if something unexpected comes up?
Teo said:
I personally think it’s a bit risky, especially with the long loan term. 72-96 months is a long time to be locked into that much debt. What happens if something unexpected comes up?
Good point. I’ll make sure to keep some emergency savings for situations like that. I’m confident I can make it work, though. Just gotta stay smart with the budget.
Honestly, it sounds like you’re making decent financial choices for your age. Just make sure you’re not stretching yourself too thin with this car. If you’re ever feeling like it’s too much, you can always reassess later. The car market is unpredictable, so you might find a better deal soon!
If you’re comfortable with that leftover cash and you’re saving too, I’d say go for it. I had a similar situation and it worked out fine for me. Just make sure you don’t get carried away with extra spending!
@Marin
Lol, yeah, gotta be careful with extra spending. I’m usually good with budgeting, though. Just need to stay on top of it. Thanks for the advice!